What is vul life insurance?

In the insurance industry, variable universal life (VUL) is a form of permanent life insurance policy with a built-in savings component that enables the policy’s cash value investment. The premium for universal life insurance is adjustable, just as it is for ordinary universal life insurance. In addition, VUL insurance contracts often feature a maximum ceiling on the investment return connected with the savings component and a minimum floor on the investment return associated with the savings component.
Unlike traditional insurance, VUL insurance contains investment subaccounts that enable the cash value to be invested. The subaccounts perform functions that are comparable to those of a mutual fund. Exposure to market volatility has the potential to yield huge gains, but it also has the potential to result in significant losses. Due to the changing consequences of investing in an ever-fluctuating market, the name of this insurance product was coined. While variable universal life insurance (VUL) provides more flexibility and growth potential than typical cash value or whole life insurance policies, policyholders should carefully consider the risks associated with the procedure before acquiring it.